More thick, high grade gold results from junior explorer Musgrave Minerals (ASX:MGV) has driven shares up over 54 per cent this morning to a new all-time high.

The new ‘bonanza’ drilling results featured a near-surface hit of 18m at 179.4 grams per tonne (g/t) gold, including 6m at 498.2g/t, at Musgrave’s new ‘Starlight’ discovery, part of its flagship 613,000oz Cue gold project in WA’s Murchison district.

There’s no actual definition of ‘bonanza’ by the way — it’s just a way to describe speccy gold grades.

In fact, there’s no official definition for high grade either, but it’s generally accepted an orebody above 5g/t meets that criteria.

Musgrave’s latest bonanza hit was made just 30m below surface, but the high-grade hits started even closer to surface than that, with one intercept returning 22m at 21g/t from 2m, including 9m at 49.2g/t from 8m.

The latest intersections in all drill holes sit outside, but close to the current resource at the Break of Day prospect.

“These are amazing gold grades to see in near-surface drilling,” managing director Rob Waugh said.

“Our deepest holes to date are still in high-grade mineralisation at 200 vertical metres where Starlight remains open down dip.

“The bonanza grades near surface will have a significant positive impact on future development at Break of Day.”

Just last week Musgrave reported intercepts like 12m at 112.9g/t gold 36m from surface, including 6m at 143g/t, which also sent the stock up +50 per cent.

Musgrave says the mineralisation remains open down plunge and along strike (east and west) below 100m depth, which means it hasn’t found the edges of this potentially large system just yet.

The drilling, which is about 80 per cent complete, is focused on infilling and extending the new high-grade Starlight lode, where mineralisation has so far been intersected over a strike of more than 115m.

This promising new discovery has landed Musgrave on the radar of former geologist and experienced stockbroker Guy Le Page, director and responsible executive at Perth-based financial services provider RM Corporate Finance.

“I am fairly confident they are going to tip over 400,000-500,000oz soon at a very healthy grade,” Le Page told Stockhead last week.

“I think that is one of the better gold discoveries we’ve seen this year, second to De Grey Mining (ASX:DEG).

“A high-grade, near-surface gold play, market cap of about $50-60m, I think there’s plenty of room to move towards $1 in the next 12 months.”

Musgrave shares hit a high of 37c on Tuesday morning, but have since edged back slightly to 33c.


In other ASX gold news today:

Tietto Minerals (ASX:TIE) has hit more high-grade gold at its 2.2-million-ounce Abujar gold project in Côte d’Ivoire. The junior explorer reported high-grade intercepts of 12m at 7.54g/t from 370m, including 5m at 17.22g/t from below the current resource.

Tietto says these new results will likely result in an increased resource, which is due for release in September this year. Shares edged up slightly to 39c.

Krakatoa Resources (ASX:KTA) has identified a new “drill-ready” target at its Belgravia project in New South Wales. Deep ground penetrating radar has pinpointed seven anomalies across the Sugarloaf target.

The company says the results, along with the previously reported rock chip sample grading 5.19g/t gold and 1.73 per cent copper, “solidify Sugarloaf as a drill-ready target”. Shares advanced as much as 9 per cent this morning to an intra-day high of 3.7c.